Back to the full list of closings

news photo

$1.2MM Nonrecourse Refinance of a 66 pad MHP in Washington

Tags: MHP financing, MHC loans, Nonrecourse loans
Thursday, Mar 04, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source for Mobile Home Parks, arranged the $1.238M refinance of a 66 pad MHP in Washington. 

The property is in a rural community in eastern Washington.  It is a nicely appointed park with excellent street appeal. A challenge to obtaining financing was that the park has its own water and septic systems throughout the park.  The buyer, an experienced owner, became comfortable with the water and septic systems and decided to buy the property with his 1031 funds, after a difficult search for a replacement property.

The borrower’s goals were to put non-recourse financing in place.  He did not have time to finalize the long term loan within the time the of the 1031 deadline. TMG suggested a quick closing with seller financing.  After the close, TMG secured a rate and term financing of the seller note with an FNMA agency loan.

TMG was able to work through all of the property issues and secure long term non-recourse financing on the property with 5 years of interest only. 

Location:  Washington

Property:  66 pad Mobile Home Park

Loan Amount: $1,238,000

Interest Rate: 4.05 %

Term:  10 Years

Amortization:  30 Years

Prepayment:   Yield Maintenance

LTV:   65%

Full List of Recent Closings